Meta scored a significant win on Tuesday after a federal judge ruled that it is not a social networking monopoly, shooting down an argument from the US Federal Trade Commission that it should be forced to spin off two of its most popular platforms.
The Federal Trade Commission sued Meta in 2020, accusing it of violating antitrust law by acquiring nascent, would-be rivals Instagram and WhatsApp to avoid having to compete with them.
The seven-week trial in the case featured testimony from a series of prominent figures, including Meta CEO Mark Zuckerberg, who argued that the company faces plenty of competition from platforms such as YouTube and TikTok.
Federal judge James Boasberg agreed with the company’s argument in his Tuesday opinion, saying that TikTok and YouTube prevent Meta from monopolizing the social network market. He also noted that Meta’s apps and the social media landscape have changed since the FTC filed its case, most recently because of AI-generated content, which undermined the agency’s arguments.
“Meta holds no monopoly in the relevant market,” he wrote.
FTC Director of Public Affairs Joe Simonson said in a statement that the agency is reviewing its options following the decision.
“We are deeply disappointed in this decision,” Simonson said. “The deck was always stacked against us with Judge Boasberg, who is currently facing articles of impeachment. We are reviewing all our options.”
A forced breakup would have been a significant loss for Meta, which relies heavily on Instagram for ad revenue and on WhatsApp for business subscriptions and international prominence.
Although Meta boasts 3.3 billion daily users across its platforms, Zuckerberg’s testimony during the seven-week trial indicated that the app with which he founded the company, Facebook, is declining in popularity.
“The Court’s decision today recognizes that Meta faces fierce competition,” Meta Chief Legal Officer Jennifer Newstead said in a statement provided by spokesperson Nkechi Nneji.
“Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America.”
The ruling also marks a win for Silicon Valley, as US regulators increasingly seek to curb Big Tech’s power. Google was recently ruled a monopoly in two separate cases related to its search and online advertising businesses. Apple and Amazon are also fighting antitrust cases brought by the government.
Meta, then known as Facebook, acquired Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion.
During the trial, lawyers for the FTC pointed to emails and internal documents that they said showed that Zuckerberg was concerned about competition from Instagram and WhatsApp before the acquisitions.
They claimed that Meta’s large user base reflected a lack of “reasonable alternatives” for consumers in the social media space.
Meta argued that regulators approved the acquisitions years ago, and that a forced breakup could harm American competitiveness in the tech space.
Boasberg’s ruling argues that Meta’s apps hold only a “modest share” of total time spent in the social media market — which includes Facebook, Instagram, Snapchat, MeWe, TikTok, and YouTube — and that its share is falling.
He added that “even if YouTube is excluded (from the relevant market), Meta still would not hold a monopoly.” (Boasberg’s opinion redacts the specific market share he believes Meta holds).
“TikTok — which Meta considers its fiercest competitor — broke into the market only seven years ago … and has been overrunning the market ever since,” Boasberg wrote.
